CFO Letter

Last year’s $124,523 net loss was disappointing in some respects. After all, 2019 generated a net income of $76,756, and the 2020 budget called for a “bottom line” of almost $250,000.

However, it was certainly not disappointing in relative terms. Our cost structure has fundamentally evolved (as expected) with the completion of our facilities in the fourth quarter of 2019. Interest and loan servicing fees on our New Market Tax Credit debt are now fully expensed, as is depreciation on the completed facility.

These categories accounted for $700,512 or 43% of total expenses in 2020, up from $471,786 in 2019. The cost of repairs and maintenance on the now fully occupied facility accounted for an additional $129,703 of the expense increase.

That means Serve Denton completed its first full year of operations in its new location while achieving a combined reduction in all other expenses of slightly over 1%.

Finally, our results are even more encouraging when viewed through the perspective of the global pandemic that so dramatically impacted every aspect of our lives. For example, the forced cancelation of our annual Celebration Fundraiser and virtually every other in-person special event reduced revenue by $229,000 compared to 2019.

We are confident that given Serve Denton’s proven ability to manage expenses and operations under previously unimaginable circumstances, combined with the loyal support of our nonprofit partners, donors, sponsors, and board members, it will continue to address the needs of our community for years to come.

Dale Schmeltzle Chief Financial Officer Serve Denton